Under existing law, counties and municipalities may create tax increment districts in areas that are blighted or otherwise meet criteria for economic development opportunities. The law provides a mechanism for funding economic development projects within tax increment districts using the increased value in taxable property of the projects. Generally, a county or municipality may only create a tax increment district if at least 50 percent of the area within a tax increment district is in need of rehabilitation or meets other economic development criteria, and the equalized taxable property in all tax increment districts within the county or municipality does not exceed 10 percent of the total value of equalized taxable property throughout the county or municipality. An exception exists for Class 3 municipalities, which may include up to 50 percent of the total value of equalized taxable property in tax increment districts. This bill would allow Class 2 municipalities to include up to 50 percent of the total value of equalized taxable property to be included in tax increment districts within the municipality, similar to Class 3 municipalities.

Statutes affected:
Introduced: 11-99-4